1. TRANSPORTATION PROGRAMS LINKING TO ECONOMIC DEVELOPMENT: A MICROANALYSIS OF DIFFERENT PRACTICES Presentation to Transportation Research Board 84 th Annual Meeting Manisha Gupta, Economic Development Research Group Glen Weisbrod, Economic Development Research Group Martin Weiss, Federal Highway Administration, US DOT www.edrgroup.com

2. TRANSPORTATION PROGRAMS LINKING TO ECONOMIC DEVELOPMENT: A MICROANALYSIS OF DIFFERENT PRACTICES AGENDA 1.PURPOSE 2.HIGHWAY-RELATED ECONOMIC DEVELOPMENT PROGRAMS 3.APPRAISAL CRITERIA 4.BEST PRACTICES 5.CONCLUSION www.edrgroup.com

3. HIGHWAY-RELATED ECONOMIC DEVELOPMENT PROGRAMS 23 States: Formal Economic Development 8 States: No Economic Development 19 States: Other Informal Alternatives www.edrgroup.com

4. HIGHWAY-RELATED ECONOMIC DEVELOPMENT PROGRAMS In 2002, transport infrastructure investments towards economic development related projects expended:  Over $600 million of state funds;  Another $30 million in set-asides;  Funding Sources: State capital; Local government; Highway user revenue (fuel sales tax, bonds, and other revenue streams) www.edrgroup.com

5. PROGRAMS WITH SPECIFIC ECONOMIC DEVELOPMENT REQUIREMENTS: Transportation Economic Assistance Program Job Creation & Retention Annual Job Auditing Local Employment Rate Highways, Airport, Rail, And Harbor Access Capital Investment Regional Transportation Benefits Payment per Job Promised $5000 max. 50% Local Match

6. Local Gov. Body Certification Max. 10% Grant of the Fair Market Value Of Designated Industrial Est. Max. Grant $400,000 per FY per County Local Match Requirement Ranks Eligibility Criteria Over Merit PROGRAMS PROVIDING INNER-CITY ROUTE: Industrial Access Road Program Supplementary Funds 5% Matched From Other Local Sources www.edrgroup.com

7. PROGRAMS IN COLLABORATION WITH ECONOMIC DEVELOPMENT OFFICE: Transportation Economic Development Fund ED Office Partners In Admn. Role DOT Funds Road Construction Min. Local Match Funding 20% Job Creation or Retention Increases the Tax Base of the Local Area Agriculture, Tourism, Forestry, High Tech, Mfg. & Mining Ind. www.edrgroup.com

8. PLANNED ECONOMIC DEVELOPMENT HIGHWAY CORRIDORS: The Four Lane Highway Program Four-Lane Highway Construction Construction in Three Phase: 1987-2002 Estimated Total Cost: $5.5 billion Job Creation or Retention www.edrgroup.com

9. APPRAISAL CRITERIA www.edrgroup.com PROGRAMS WITH SPECIFIC ECON. DEV. REQUIREMENTS PROGRAMS PROVIDING INNER-CITY ROUTE PLANNED ECONOMIC DEVELOPMENT HIGHWAY CORRDORS PROGRAMS IN COLLABORATION WITH STATE ED OFFICE

10. APPRAISAL CRITERIA www.edrgroup.com PROGRAMS WITH SPECIFIC ECON. DEV. REQUIREMENT PROGRAMS PROVIDING INNER-CITY ROUTE PROGRAMS IN COLLABORATION WITH ED OFFICE PLANNED ECONOMIC DEVELOPMENT CORRIDORS  Immediate need vs. other projects;  Airport & rail access;  60% grant & 40% interest free loan structure;  Job auditing;  Local match;  Over budgeted projects matched dollar- for-dollar;  Fund limits per county per fiscal year;  Preference to rural, distressed area;  Comparing cost- benefit ratio;  Job tracking;  Fund based on project size;  Monitoring construction & maintenance;  Compatibility with long-range Transportation Plans;  Conducting program impact studies;

11. BEST PRACTICES www.edrgroup.com ECON. DEV. SCORECARD JOB AUDITING ECONOMIC IMPACT OF PROGRAMS ECON. DEV. POLICY & PARTNERSHIP IMMEDIATE NEED/OTHER PROJECT Ohio DOT Washington DOT’s REV, Wisconsin DOT’s TEA Minimizes Over-Under- Estimating Economic Effects Provide Flexibility, & Synergy of Economic Development Kentucky DOT, Pennsylvania DOT, Arizona DOT’s ESP Insight into Current & Future Economic Needs and Strengths & Weaknesses Georgia DOT’s GRIP, IOWA DOT’s RISE Recognizes an Immediate Need versus a Future Requirement Oregon DOT’s IOF, IOWA DOT’s RISE Methodological Selection of Econ. Dev. Projects

12. MODEL FRAMEWORK www.edrgroup.com OBJECTIVE SELECTION CRITERIA PERFORMANCE MEASSUREMENTS APPRAISAL METHODS MONITORING/ EVALUATION ADOPTED BEST PRACTICES ECONOMIC BENEFITS  JOB CREATION  CAPITAL INVESTMENT  ROAD ACCESS  COST SAVINGS  CONVENIENCE

13. www.edrgroup.com STATE PROGRAMS SEARCH GO TO: www.edrgroup.com www.edrgroup.com/edr1/consulting/2_8/P096-state-econdevel-hwy- prog.shtml OR www.fhwa.dot.gov/planning/econdev/taskabjan30.htm FOR FURTHER INFORMATION ON THIS PAPER